This is an accounting related question regarding coporate taxation. It falls under the "accounting" subject of Chegg.

Problem 19-49 (a) (LO. 8) WhatIf1

Lenox Corporation has 80,000 shares of common stock outstanding. Duncan owns 10,000 shares, Duncan's brother owns 900 shares, Duncan's wife owns 500 shares, and Duncan's daughter owns 150 shares. In addition, Jasmine Corporation owns 2,000 shares. Duncan owns 80% of the stock in Jasmine Corporation.

a. Applying the 318 stock attribution rules, Duncan constructively owns (#1)___________ shares in Lenox Corporation.

b. If Duncan owned 40% of the stock of Jasmine Corporation, then he would constructively own (#2)___________ shares in Lenox Corporation.

c. Assume the same facts as in (a) above, but in addition, Duncan owns a 10% interest in Cohen Partnership. Cohen owns 1,000 shares in Lenox Corporation.

How many shares does Duncan own, directly and indirectly, in Lenox Corporation? (#3)___________ shares.

#1.

#2.

#3